Homework SourseWells Technical Institute WTI a school owned by Tristana Wel
Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31, 2017, follows. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31, 2017, follow
Prepare the necessary adjusting journal entries for items a through h. Assume that adjusting entries are made only at year-end.
Answer is complete and correct.
2-a. Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts.
2-b. Prepare an adjusted trial balance.
Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts.
3-a. Prepare Wells Technical Institute\'s income statement for the year 2017.
3-b. Prepare Wells Technical Institute\'s statement of owner\'s equity for the year 2017.
3-c. Prepare Wells Technical Institute\'s balance sheet as of December 31, 2017.
| No | Transaction | General Journal | Debit | Credit |
|---|---|---|---|---|
| 1 | a. | Insurance expenseselected answer correct | 3,335selected answer correct | not attempted |
| Prepaid insuranceselected answer correct | not attempted | 3,335selected answer correct | ||
| 2 | b. | Teaching supplies expenseselected answer correct | 7,645selected answer correct | not attempted |
| Teaching suppliesselected answer correct | not attempted | 7,645selected answer correct | ||
| 3 | c. | Depreciation expense—Equipmentselected answer correct | 13,342selected answer correct | not attempted |
| Accumulated depreciation—Equipmentselected answer correct | not attempted | 13,342selected answer correct | ||
| 4 | d. | Depreciation expense—Professional libraryselected answer correct | 6,671selected answer correct | not attempted |
| Accumulated depreciation—Professional libraryselected answer correct | not attempted | 6,671selected answer correct | ||
| 5 | e. | Unearned training feesselected answer correct | 5,000selected answer correct | not attempted |
| Training fees earnedselected answer correct | not attempted | 5,000selected answer correct | ||
| 6 | f. | Accounts receivableselected answer correct | 10,153selected answer correct | not attempted |
| Tuition fees earnedselected answer correct | not attempted | 10,153selected answer correct | ||
| 7 | g. | Salaries expenseselected answer correct | 400selected answer correct | not attempted |
| Salaries payableselected answer correct | not attempted | 400selected answer correct | ||
| 8 | h. | Rent expenseselected answer correct | 2,108selected answer correct | not attempted |
| Prepaid rentselected answer correct | not attempted | 2,108selected answer correct |
Solution
1. T-accounts
2.Adjustment Journal entries
3. Adjusted trial balance
4. Income Statement and Statement of owners\' equity
Balance sheet
| Cash | Accounts Receivable | Teaching supplies | |||||||||||
| Event | Debit | Credit | Event | Event | Debit | Credit | Event | Event | Debit | Credit | Event | ||
| Beg.Bal | 34000 | Beg.Bal | 0 | Beg.Bal | 8000 | 5200 | b | ||||||
| f | 7500 | ||||||||||||
| End.Bal | 34000 | End Bal | 7500 | 8000 | 5200 | ||||||||
| End.Bal. | 2800 | ||||||||||||
| Prepaid Insurance | Prepaid Rent | Professional lbrary | |||||||||||
| Event | Debit | Credit | Event | Event | Debit | Credit | Event | Event | Debit | Credit | Event | ||
| Beg.Bal | 12000 | 2400 | a | Beg.Bal | 3000 | Beg.Bal | 35000 | ||||||
| 3000 | h | ||||||||||||
| 12000 | 2400 | 3000 | 3000 | End.Bal. | 35000 | ||||||||
| End.Bal. | 9600 | End.Bal. | 0 | ||||||||||
| Accumulated depreciation - Profess. Liabrary | Equipment | Accumualted Depreciation - Equipment | |||||||||||
| Event | Debit | Credit | Event | Event | Debit | Credit | Event | Event | Debit | Credit | Event | ||
| Beg.Bal | 10000 | Beg.Bal | 80000 | Beg.Bal | 15000 | ||||||||
| 7200 | d | 13200 | c | ||||||||||
| 80000 | |||||||||||||
| 17200 | 28200 | ||||||||||||
| End.Bal. | 17200 | End.Bal. | 80000 | End.Bal. | 28200 | ||||||||
| Accounts payable | Salaries payable | Unearned training fee | |||||||||||
| Event | Debit | Credit | Event | Event | Debit | Credit | Event | Event | Debit | Credit | Event | ||
| Beg.Bal | 26000 | Beg.Bal | 0 | Beg.Bal | 12500 | ||||||||
| 400 | g | e | 5000 | ||||||||||
| End Bal | 26000 | End Bal | 400 | 5000 | 12500 | ||||||||
| End Bal | 7500 | ||||||||||||
| T.Wells - capital | Tution fee earned | Training fee earned | |||||||||||
| Event | Debit | Credit | Event | Event | Debit | Credit | Event | Event | Debit | Credit | Event | ||
| Beg.Bal | 90000 | Beg.Bal | 123900 | Beg.Bal | 40000 | ||||||||
| 7500 | f | 5000 | e | ||||||||||
| 45000 | |||||||||||||
| End Bal | 90000 | End Bal | 131400 | ||||||||||
| End Bal | 45000 | ||||||||||||
| Depreciation expense - Professional Library | Depreciation expense - Equipment | Salaries expense | |||||||||||
| Event | Debit | Credit | Event | Event | Debit | Credit | Event | Event | Debit | Credit | Event | ||
| Beg.Bal | 0 | Beg.Bal | 0 | Beg.Bal | 50000 | ||||||||
| d | 7200 | c | 13200 | g | 400 | ||||||||
| 7200 | 13200 | 50400 | |||||||||||
| End Bal | 7200 | 0 | End Bal | 13200 | 0 | End Bal | 50400 | ||||||
| Insurance expense | Rent expense | Teaching supplies expense | |||||||||||
| Event | Debit | Credit | Event | Event | Debit | Credit | Event | Event | Debit | Credit | Event | ||
| Beg.Bal | 0 | Beg.Bal | 33000 | Beg.Bal | 0 | ||||||||
| a | 2400 | h | 3000 | b | 5200 | ||||||||
| 2400 | 36000 | 5200 | |||||||||||
| End Bal | 2400 | End Bal | 36000 | End Bal | 5200 | 0 | |||||||
| Advettising expense | Utilities expense | t. Wells - Withdrawals | |||||||||||
| Event | Debit | Credit | Event | Event | Debit | Credit | Event | Event | Debit | Credit | Event | ||
| Beg.Bal | 6000 | Beg.Bal | 6400 | Beg.Bal | 0 | 50000 | |||||||
| 6000 | 6400 | 0 | 50000 | ||||||||||
| End Bal | 6000 | End Bal | 6400 | End Bal | 50000 |
